BCE Loses Second Cellular Contract in India

India's decision to award cellular licenses to joint ventures led by France Telecom, Australia's government-owned OTC, Bell South Corp., and Britain's Vodafone Group PLC, came as a blow to BCE Inc.'s international expansion plans. The telecommunications company had initially won a contract for Delhi in 1992, but lost it after a court ruling declared the awarding process flawed. BCE's joint venture, Tata Cellular, was denied the contract again this week, despite a second reassessment by the Indian government.

Key Takeaways:

  • BCE's joint venture, Tata Cellular, initially won a cellular contract for Delhi in 1992, but lost it after a court ruling.
  • The Indian government awarded the contract to a joint venture led by Australia's government-owned OTC.
  • BCE's bid was rejected for the second time, despite a second reassessment by the Indian government.
  • BCE has other international telecommunications ventures underway, including a partnership in Colombia and a manufacturing arm with contracts in several countries.
  • The company has a significant presence in the global telecommunications market, with investments in New Zealand and Britain.

Statistics:

  • There are 230 million people in India's urban population, with fewer than 10 phone lines for every 1,000 people.
  • In contrast, Canada has 780 phone lines for every 1,000 people.
  • BCE's manufacturing arm, Northern Telecom Ltd., has won major contracts in Colombia, Taiwan, China, and Mexico.
  • The company intends to invest up to $180-million (U.S.) in its Colombian partnership.
  • BCE owns 24% of New Zealand long-distance company Clear Communications Ltd. and 20% of British phone company Mercury Communications Ltd.

Sources:

  • "BCE Loses Second Cellular Contract in India" by unknown author, unknown publication (exact source not specified)
  • Various articles and press releases from Business Wire and BCE Inc.
  • Court rulings and news articles from the Globe and Mail, including "BCE Loses Second Cellular Contract in India" by unknown author.